(Learning Objective 1: Account for warranty expense and the related liability) The accounting…

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(Learning Objective 1: Account for warranty expense and the related liability) The accounting records of Dee’s Appliances included the following balances at the end of the period:

In the past, Dee’s warranty expense has been 8% of sales. During the current period, the business paid $7,100 to satisfy the warranty claims.

 

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